Fair Housing

Blockbusting (panic peddling) involves:

AA lender refusing to make loans in minority areas
BInducing homeowners to sell by suggesting that minority groups are moving into the neighborhood✓ Correct
CA developer restricting sales to certain buyers
DAn agent steering minority buyers to specific neighborhoods

Explanation

Blockbusting is the illegal practice of inducing panic selling by telling homeowners that persons of a protected class are moving into the neighborhood, causing property values to decline. It is a violation of the Fair Housing Act.

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